Keppel Tat Lee is considered one of the best-managed banks in Singapore. During the currency crisis, it made substantial provisions for loans likely to be affected by the turmoil during 1997 and last year.

In a recent report on the bank, ABN AMRO stockbrokers in Singapore said KTL had the "cleanest" balance sheet in the sector.

Keppel took an aggressive approach to restore its financial health when it acquired Tat Lee last year, paying particular attention to Tat Lee's exposure to Indonesia. "Provisions to date are sufficient to cover up to 74 per cent of its total Indonesian exposure of 718 million Singapore dollars [£316 million]. Total regional exposure has been cut by 35 per cent to 2.1 billion Singapore dollars," according to ABN AMRO.

The merger between Keppel and Tat Lee is expected to realise cost savings of 50 million Singapore dollars, much of which is expected to be achieved this year. Apart from its retail and commercial banking franchises, KTL is also focused on the corporate sector in Singapore. The bank has total assets worth 20 billion Singapore dollars.

The group is 36 per cent owned by the Keppel Corporation. A further 11 per cent of the shares are held by the Tat Lee family, while the Singapore government owns a 5 per cent stake.